A manager of a cost centre would most likely be held responsible for which of the following variances?
A) Flexible budget variance
B) Sales volume variance
C) Sales price variance
D) Direct materials price variance

Question

Quizplus · Accepted Answer

A cost centre manager is typically responsible for the management of costs within a particular department or function. The direct materials price variance relates specifically to the cost of materials used in production, which falls within the purview of a cost centre manager. The flexible budget variance, sales volume variance, and sales price variance are more likely to be the responsibility of a revenue centre manager, who is responsible for generating revenue and managing sales activities.

A Manager of a Cost Centre Would Most Likely Be